Terra Tech Corp (OTCMKTS:TRTC) Shareholders Can Rest Easy

Perhaps the biggest overhang on shares of Terra Tech Corp (OTCMKTS:TRTC) has been a reverse split. After second quarter earnings were reported, it was all that was on shareholder's mind. The shorts sensed the weakness and contributed to Terra Tech dipping below $.30 a share. But now shares are rallying again as a reverse split is firmly off the table. This is great news for Terra Tech shareholders and marks the start of a new bull run on the back of Green Rush 2.0 that's about to heat up.Proposal Five has been intentionally omitted from the latest proxy statement ahead of the annual meeting to take place on September 26. The company said:

Proposal Five, as set forth in our proxy statement, provided for an amendment to our Articles of Incorporation to implement one or more reverse stock splits of our common stock at an aggregate ratio of not less than one-for-five and not more than one-for-twenty, within the discretion of our Board of Directors, at any time or from time-to-time prior to September 26, 2017. Subsequent to the date of the Proxy Statement, our Board of Directors decided to withdraw Proposal Five from consideration at the Annual Meeting. Based on the recent trading history of our common stock and on meetings that our executive management team has had with representatives of various investment banks, investment funds, and other potential financing sources for our business, our Board concluded, at this time, that it would withdraw its earlier recommendation that our stockholders be afforded the opportunity to approve a reverse split of our common stock. In making its decision, our Board took the trading history and the results of those meetings into account when it concluded that the market for our common stock (per-share market pricing and liquidity), investor interest, and our financing and capital-raising abilities were satisfactory at this time and might not be materially enhanced if our stockholders were to provide the reverse split authority initially sought by Proposal Five. Accordingly, Proposal Five has been withdrawn from consideration at the Annual Meeting.

As we said last month, the second quarter earnings report was a solid report as TRTC saw growth across the board. Total revenues generated for the quarter ended June 30, 2016 were approximately $9.7 million, compared to $5.0 million in the same period in 2015. This is an increase of 93% from the quarter ended June 30, 2015.The increase in second quarter revenues was primarily attributable to sales from the acquisition of the Blüm dispensary in Oakland, California, which closed on April 1, 2016, and sales from the Western, Las Vegas Blum dispensary which opened during the quarter. Second quarter revenues also benefited from higher Edible Garden sales of its produce, herbs and floral products.What we really liked was the gross margin expansion. Gross margin for the second quarter of 2016 amounted to approximately 17%, compared to a gross margin of approximately 5% for the second quarter of 2015. The improved margins were attributable to better margins at Edible Garden, as the business continues to scale and higher gross profit from the cannabis segments of Blum and IVXX.Currently trading with a market cap of $124 million, TRTC has made tremendous progress in the past year. However, the reverse split has been the one cloud hanging over the share price as it would have enriched insiders at the expense of common shareholders. The proposed reverse split would have exempt holders of the “B Preferred” shares, which are held by insiders and entitle holders to 5.38 common shares upon conversion and also offer extra voting rights.Now the focus for Terra Tech turns to marijuana ballot initiatives in California and Nevada come November. There is no better company positioned than Terra Tech to capitalize if these initiatives pass. If they do, shares of TRTC are off and running. We will be updating our subscribers as soon as we know more. For the latest updates on TRTC, sign up below!Disclosure: We have NO position in TRTC and have NOT been compensated for this article.